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Upturn AI SWOT - About
CSWC 
Capital Southwest Corporation (CSWC)
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Upturn Advisory Summary
06/16/2025: CSWC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
7 Analysts rated it
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Year Target Price $22.81
Year Target Price $22.81
| 2 | Strong Buy |
| 1 | Buy |
| 4 | Hold |
| 0 | Under performing |
| 0 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit 20.57% | Avg. Invested days 40 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 06/16/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.20B USD | Price to earnings Ratio 14.88 | 1Y Target Price 22.81 |
Price to earnings Ratio 14.88 | 1Y Target Price 22.81 | ||
Volume (30-day avg) 7 | Beta 1 | 52 Weeks Range 16.05 - 24.68 | Updated Date 06/30/2025 |
52 Weeks Range 16.05 - 24.68 | Updated Date 06/30/2025 | ||
Dividends yield (FY) 11.66% | Basic EPS (TTM) 1.47 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 34.51% | Operating Margin (TTM) 83.33% |
Management Effectiveness
Return on Assets (TTM) 6.38% | Return on Equity (TTM) 8.61% |
Valuation
Trailing PE 14.88 | Forward PE 9.14 | Enterprise Value 2092898048 | Price to Sales(TTM) 5.86 |
Enterprise Value 2092898048 | Price to Sales(TTM) 5.86 | ||
Enterprise Value to Revenue 19.8 | Enterprise Value to EBITDA - | Shares Outstanding 54816900 | Shares Floating 52063441 |
Shares Outstanding 54816900 | Shares Floating 52063441 | ||
Percent Insiders 4.12 | Percent Institutions 33.13 |
Analyst Ratings
Rating 3 | Target Price 22.81 | Buy 1 | Strong Buy 2 |
Buy 1 | Strong Buy 2 | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Capital Southwest Corporation
Company Overview
History and Background
Capital Southwest Corporation (CSWC) was founded in 1961 as a publicly traded investment company. It has evolved from a general investment firm to a business development company (BDC) focused on providing capital to middle-market companies.
Core Business Areas
- Direct Investments: Provides first lien senior secured debt, unitranche debt, second lien debt, and minority equity investments to U.S. based middle market companies
Leadership and Structure
Bowen Diehl serves as the President and CEO. The company is structured with an investment committee that oversees investment decisions.
Top Products and Market Share
Key Offerings
- Debt Financing: Capital Southwest provides debt financing to middle market companies. The market share data is not publicly available in a clear number format. Key competitors include other BDCs and private credit funds. Competitors include Ares Capital Corporation (ARCC), Main Street Capital Corporation (MAIN), and Prospect Capital Corporation (PSEC).
- Equity Investments: Alongside debt, Capital Southwest often makes minority equity investments. The specific revenue or user data attributed to this isn't publically available in a clear number format. Again, key competitors include Ares Capital Corporation (ARCC), Main Street Capital Corporation (MAIN), and Prospect Capital Corporation (PSEC).
Market Dynamics
Industry Overview
The BDC industry is driven by demand for capital from middle-market companies, which often face challenges accessing traditional financing. Interest rates, economic conditions, and regulatory changes influence the industry.
Positioning
Capital Southwest positions itself as a reliable capital provider for middle-market companies with a focus on disciplined underwriting and risk management.
Total Addressable Market (TAM)
The TAM for middle-market lending is substantial, estimated in the hundreds of billions of dollars. Capital Southwest targets a niche within this TAM, focusing on companies in specific industries and with strong management teams.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Disciplined underwriting process
- Strong track record of generating returns
- Diversified investment portfolio
Weaknesses
- Reliance on external financing
- Exposure to credit risk
- Sensitivity to interest rate changes
- Potential for regulatory changes
Opportunities
- Growing demand for capital from middle-market companies
- Expanding investment opportunities in attractive industries
- Potential for strategic acquisitions
- Increasing investor interest in alternative investments
Threats
- Economic downturn
- Increased competition from other BDCs and private credit funds
- Rising interest rates
- Regulatory changes
Competitors and Market Share
Key Competitors
- Ares Capital Corporation (ARCC)
- Main Street Capital Corporation (MAIN)
- Prospect Capital Corporation (PSEC)
Competitive Landscape
Capital Southwest's advantages include its experienced management team and disciplined underwriting process. Disadvantages include its smaller size compared to larger BDCs.
Growth Trajectory and Initiatives
Historical Growth: Capital Southwest has experienced strong growth in its investment portfolio and net asset value over the past few years.
Future Projections: Analyst estimates suggest continued growth in earnings and dividends, driven by disciplined investment activity.
Recent Initiatives: Recent initiatives include expanding the investment team, focusing on larger investment opportunities, and raising additional capital.
Summary
Capital Southwest Corporation is a BDC with a strong history and experienced management team. The company benefits from its disciplined underwriting process and diversified investment portfolio. However, it faces risks associated with credit quality, interest rates, and regulatory changes. Overall the trend of financials indicate a strong company. CSWC must watch out for greater competition.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Website
- Analyst Reports
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market share estimates are approximate and may vary based on source.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Capital Southwest Corporation
Exchange NASDAQ | Headquaters Dallas, TX, United States | ||
IPO Launch date 1990-03-27 | CEO, President & Director Mr. Michael Scott Sarner CPA, CPA | ||
Sector Financial Services | Industry Asset Management | Full time employees 30 | Website https://www.capitalsouthwest.com |
Full time employees 30 | Website https://www.capitalsouthwest.com | ||
Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, industry consolidation, recapitalizations and growth capital investments. The firm does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing. In lower middle market, the firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyouts situations. The investment structures are Unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm makes equity co-investments alongside debt investments, up to 20% of total check and only makes non-control investments. The firm is Industry agnostic, but it prefers to invest in Industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services and SaaS models. The firm seeks to invest in energy services and products, industrial technologies, and specialty chemicals and products. Within energy services and products, the firm seeks to invest in each segment of the industry, including upstream, midstream and downstream, excluding exploration and production with a focus on differentiated products and services, equipment and tool rental, consumable products, and drilling and completion chemicals. Within industrial technologies, it seeks to invest in automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring and testing, professional tools, and sensors and instrumentation. Within and specialty chemicals and produc
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